Case Analysis / Legal Updates

Trade Secret Protection Act | Supreme Court Judgment Holding That the Concept of a Trade Secret Under the Civil Procedure Act Is Identical to the Concept Under the Unfair Competition Prevention and Trade Secret Protection Act

2026.02.06김국일

This is a Supreme Court judgment holding that the concept corresponding to the Trade Secret Protection Act must be interpreted identically to the concept of a ‘trade secret’ for which the inspection and copying of a written judgment is restricted under the rules of the Civil Procedure Act.

1. Trade Secret Protection Act, a Case in Which the Concept of a Trade Secret Was at Issue

This is a case in which the issue was whether the concept of a trade secret defined under the Trade Secret Protection Act must be interpreted identically to the concept of a trade secret for which the inspection and copying of a written judgment is restricted.

The applicant filed an application seeking, among other things, restriction of third-party access to information contained in the appellate judgment concerning a civil action between the applicant and A.

The lower court dismissed the application, finding that ‘the prima facie showing that the information constituted a trade secret was insufficient.’

Application to Restrict the Inspection and Copying of a Written Judgment to Protect Trade Secrets

Where a trade secret of an interested party is recorded in a written judgment, an application may be filed to restrict the inspection and copying of the written judgment in order to protect that secret.

The trade secret in question refers to a trade secret as defined in Article 2, Item 2 of the Unfair Competition Prevention and Trade Secret Protection Act.

A trade secret under that statute means information that is not publicly known and that has independent economic value, including a production method, a sales method, or other technical or managerial information useful for business activities that is managed as a secret.

An interested party to a case who does not wish to have sensitive information, such as personal information contained in the judgment, inspected may submit an 🔗application to restrict inspection and similar access to the court to restrict the inspection of that content.

2. Trade Secret Protection Act, the Supreme Court's Determination

In the litigation in which the concept corresponding to the Trade Secret Protection Act was at issue, the Supreme Court, unlike the lower court that had found that it did not constitute such a concept, determined that it constituted a trade secret.

The information in this case includes the circumstances and purpose under which the applicant entered into a patent assignment agreement with Non-Party Company 1, as well as the calculation of royalties under the cross-license agreement between Non-Party Company 2 and the applicant and the related amounts. The applicant and Non-Party Company 2 had not disclosed this information externally.

In entering into the assignment agreement, the applicant and Non-Party Company 1 imposed a confidentiality obligation providing that the contents recorded in the agreement, including the calculation of royalties under the cross-license agreement between Non-Party Company 2 and the applicant and the related amounts, must not be disclosed to third parties.

The Supreme Court viewed the information in this case as information that could be usefully used by the applicant's competitors in the course of entering into a license agreement with Non-Party Company 2.

The Supreme Court determined that there was room to find that a prima facie showing had been made that the information in this case, being information that is not publicly known and that has independent economic value and that constitutes managerial information useful for business activities and managed as a secret, constituted the applicant's trade secret.

Accordingly, the Supreme Court stated that the lower court's dismissal of the application was erroneous in that it misapprehended the legal principles concerning trade secrets under Article 163, Paragraph 1, Item 2 of the Civil Procedure Act and Article 2, Item 2 of the Unfair Competition Prevention and Trade Secret Protection Act, thereby affecting the judgment, and it reversed and remanded the lower judgment.

3. Trade Secret Protection Act, What Is Daeryun's Strategy?

A trade secret under Article 2, Item 2 of the Unfair Competition Prevention and Trade Secret Protection Act, which concerns the protection of trade secrets, means information that is not publicly known and that has independent economic value, including a production method, a sales method, or other technical or managerial information useful for business activities that is managed as a secret.

Under the ‘Rules on the Inspection and Copying of Civil Judgments’ of the Civil Procedure Act, where a trade secret held by an interested party is recorded in the written judgment of a case in which a judgment has been pronounced, the inspection and copying through the internet and similar means of the portion of the written judgment in which the secret is recorded may be restricted upon the application of the interested party.

The Trade Secret Protection Act is an important statute that protects the assets of businesses, with the aim of maintaining a sound transactional order.

At Daeryun Law Firm, attorneys experienced in corporate matters provide prompt evidence-gathering and strategic responses for the business competitiveness of companies. If you need advice regarding the Trade Secret Protection Act, you are welcome to contact Daeryun's 🔗Corporate Legal Group.